A proposal as comprehensive as what is being proposed will need to be examined so NO GROUP of Americans is harmed, and ALL GROUPS of Americans benefit. Simplifying the tax code, lowering the rates, and eliminating the payroll tax to restore incentive to work for the lower middle class are vital. But, fairness is important. I myself share this particular concern (I have some some other concerns as well). This particular concern can be addressed by an increase in the S.S. monthly payments so as to offset the VAT or sales tax-like aspect of the proposal. (This fix is really that simple!) Working people will get a huge increase in their take-home pay because of the elimination of payroll taxes. This will more than make-up for the VAT aspect of the proposal. But, those receiving S.S. benefits won’t have this off-set. Going through the proposal step by step in such manner might require an adjustment in the rates so as to not blow a hole in the deficit, but fairness has to be a very big priority has to be as high a priority as tax simplification, lowering the rates, restoring the incentive to work, balancing the budget and ensuring the solvency of S.S. and Medicare. We can and must do all these things without hurting any group of us.
Simplifying the tax code, lowering the rates, and eliminating the payroll tax to restore incentive to work for the lower middle class are vital. But, fairness is important.
I myself share this particular concern (I have some some other concerns as well). This particular concern can be addressed by an increase in the S.S. monthly payments so as to offset the VAT or sales tax-like aspect of the proposal. (This fix is really that simple!)
Working people will get a huge increase in their take-home pay because of the elimination of payroll taxes. This will more than make-up for the VAT aspect of the proposal. But, those receiving S.S. benefits won't have this off-set.
Going through the proposal step by step in such manner might require an adjustment in the rates so as to not blow a hole in the deficit, but fairness has to be a very big priority has to be as high a priority as tax simplification, lowering the rates, restoring the incentive to work, balancing the budget and ensuring the solvency of S.S. and Medicare.
We can and must do all these things without hurting any group of us.
Great post, and very thoughtful.